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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Tax Exempt Bonds

Definition:

Want to pay fewer taxes?

Tax exempt bonds are one way to do that. With these bonds, you don't pay local, state, or federal taxes on your investment so your investment dollar goes further. Municipal bonds are an example of tax-exempt bonds. Whatever money you make from your muni bonds is money the IRS can't touch.